LEGAL COMPLIANCE& PROCUREMENT

SO MUCH OF DISCORD

CONTRACT SUPPLIER
COMPLIANCE RELATIONSHP COST SAVINGS
STANDARDISATION
MANAGEMENT
 LEGAL COMPLIANCE
Needs to standardize the contracting process,
Strictness with Clauses and Risk Compliance.
Needs to streamline processes
and establish strict controls.
LEGAL This may include very specific
LAW
and unique contracting terms
and conditions.
Ensure that contracts strictly adhere to
all legal requirements and everyone is
familiar and abide with the laws, acts,
regulations, policies, and procedures.
Need time to handle a larger number of
contracts in multiple domains with specific
and unique contracting terms and
conditions.
PROCUREMENT
Needs to develop long term strategic
relationships with suppliers and add more value
to the company’s bottom line.
Needs contracting to be more
flexible to generate additional
savings and contribute in value
PROCUREMENT
creation.
This may include insertion of
necessary clauses that help
them take advantage of
dynamic marketing conditions
Needs to constantly monitor the
prevailing market conditions
and the flexibility to adapt to
changes
Needs the contract creation and
execution cycles to be as short as
possible to not to miss out on
additional savings based on time
discounts or market variations.
 Best in Class:
• Centralized contracts that relevant teams can securely
THE RELATION BETWEEN THE DUO NEEDS CONTINUOUS IMPROVEMENT

access and easily find.

• Stakeholders having visibility of key dates
• Automated processes that alleviate administrative
burdens from Procurement and Legal
• Teams being able to work harmoniously through all
lifecycle stages, including negotiations and approvals
• Clear ownership of agreements and their outcomes.

Limited Structure :
• Legal Compliance is defined for certain category of Contracts
• Limited Resources to monitor Legal compliance of
Procurement
• Some sharing of info. between Procurement and Legal
• IT Systems are not used by both functions for transactional
purposes
• Control points, are in place but only to monitor critical
contracts.

Ad, Hoc Practices :

• Legal Compliance is not a priority for Procurement

• Resources are not in place for compliance
• Silo Working of Procurement and Legal
• IT Systems are not used or used by Procurement for transactions
• Control points , metrics or reporting capabilities are not established
BEST IN CLASS COLLABORATION BETWEEN PROCUREMENT AND LEGAL
How do we have that?
• Involve Legal right from the beginning of contract
P
R • Collaborate with specific domain contract specialists i.e. Construction,
I IT, Pharma for efficient category management.
N
C • Encourage transparency between Procurement and Legal
I
P • Have shared visions for negotiations, reviews, approvals, risk mitigation
L and compliance for Proc. And Legal
E

P • Both departments access the correct information w.r.t Contract Creation,

R Management, Performance payments, renewals and termination.
A
• Create central access, ensure contract visibility to facilitate Proc. and Legal
C teams from work in sync.
T
I • Both Proc. And Legal review and approve suppliers in parallel.
C
E
S

T
• Automate the process. Use Contract Management Software to set up
E workflows and limits, manage contracts, and communicate between
C departments.
H • Create Customizable Workflows in the system for Procurement and Legal
N • Assign process ownership for each step of the contract.
O • Create pre-vetted clauses for common changes.
L • Establish a contract playbook for procurement teams with clear guidance on
O handling edits.
G
Y
 Compliance  Value for  Flexibility of
Spend Contracts

 Robust Supply
 Risk Management Chain  Supplier
Relationships
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@RAVI NISHANT
Adding romance to the process since 1981